Local market climbs to 9,565.12 points, the highest in 6.5 years

TAIPEI, Taiwan -- Shares in Taiwan regained their footing Thursday, vaulting the index back to the 9,500-point level, closed up 0.79 percent at 18-month high of 9,565.12.

The weighted index on the Taiwan Stock Exchange closed up 75.14 points, or 0.79 percent, at 9,565.12, after moving between 9,512.89 and 9,568.75, on turnover of NT$124.08 billion (US$4.15 billion). The closing level was the highest in about 80 months.

Foreign Buying Continue

"Before a monthly settlement in the futures market scheduled for next week, foreign buying is likely to continue to push up the index," said Concord Securities analyst Kerry Huang. "But investors had better remain alert over possible technical resistance ahead of 9,600 points," Huang said.

The financial sector gave another shot in the arm to the broader market, led by Cathay Financial Holding Co. (國泰金控), which ranked as the most profitable listed financial holding company in Taiwan in the first half of this year, they added.

The market opened up 0.24 percent as investors were encouraged by a rebound staged on Wall Street overnight amid eased concerns that the U.S. Federal Reserve will start a rate hike cycle sooner than the market had anticipated, the dealers said.

Momentum accelerated to help the index move above the 9,500-point level for the rest of the session amid continued buying by foreign institutional investors, they said.

"Foreign institutional investors still maintained a large number of long position contracts in the futures market, indicating that they remain upbeat about the spot market," Huang said.

"In addition, with fears of a possible rate hike by the Fed eased, investors were more willing to pick up select electronics and financial stocks soon after the local market opened," Huang said.